Britain may need to see a fresh fall in the pound after failing to make
progress in tackling its deficit with the rest of the world, a Bank of
England policymaker has said.

Martin Weale, an external member of the Monetary Policy Committee, said that a
lower exchange rate would have unwelcome effects on inflation, but that it
may be necessary to redress Britain’s “substantial external imbalance”.

Britain witnessed its biggest currency depreciation since the Second World War
amid the banking crash of 2007-09, but the trade deficit and current account
deficit remain stubbornly wide. This has dented hopes in